Tuesday, February 16, 2010
Labaton Sucharow Secures C$28 Million Settlement Against NovaGold Resources Inc.
NEW YORK (February 16, 2010) — Labaton Sucharow LLP announced today that NovaGold Resources Inc. ("NovaGold") has agreed to a C$28 million cash settlement of the class action lawsuit arising from allegations that investors were misled about the economic feasibility of Novagold’s largest mining project, Galore Creek. The New Orleans Employees’ Retirement System is the Lead Plaintiff in the lawsuit.
The complaint alleges that, between October 25, 2005 and November 26, 2006, NovaGold violated federal securities laws by disseminating a series of materially false and misleading statements relating to the accuracy and reliability of an independent study regarding the economic feasibility of its largest mining project, Galore Creek. The complaint alleges that internal cost estimates were more than double the costs stated in the report, prompting NovaGold to shut down the mine.
This settlement resolves the claims of all of NovaGold’s shareholders who purchased shares on the American Stock Exchange and Toronto Stock Exchange, pending approval of the U.S. Federal Court for the Southern District of New York and the Canadian courts presiding over class actions pending in that country. Shareholders are represented by Sutts, Strosberg LLP in the Canadian actions.
The New Orleans Employees’ Retirement System is represented by the law firm of Labaton Sucharow LLP. More information about the Firm is available at www.labaton.com.